Earlier today, Bank of America analyst Ming Hsun Lee doubled down on XPEV’s bull case with a $63 price target while maintaining a Buy rating. The price target boost came after the company released strong September vehicle delivery numbers. Despite the lack of bullish sentiment in recent weeks, Xpeng stock remains highly upgraded amongst analysts with an average target valuation of $53 a share.
Bank of America boosts revenue forecasts for Xpeng stock
Ming Hsun Lee raised his revenue estimates over the next 3 years by 7%, 8%, and 10%, respectively. The analyst noted the boost in Xpeng’s revenue outlook accounts for higher volume sales assumptions after a strong Q3 delivery performance. The analysts $63 valuation represents a 80% upside from the current trading price. Despite the boosted target, Xpeng stock remains in the red as EV stocks struggle to gain momentum.
Xpeng delivers 25,666 vehicles in the third quarter
This morning, XPeng reported 10,412 vehicle deliveries in the month of September, marking a record month for the Chinese EV manufacturer. The result represented a month on month improvement of 44%. For the third quarter, 25,666 units were delivered which was a 48% improvement quarter on quarter. The Q3 performance beat Lee’s estimate by 15% and the remainder of Wallstreet by 14%-19%.
“Deliveries in September consisted of 7,512 P7s, the Company’s smart sports sedan, and 2,656 G3 and G3i smart SUVs as well as 244 P5 smart family sedans which were officially launched on September 15.”XPeng Vehicle Delivery Results for September and Third Quarter 2021
Morgan Stanley is Bullish on the P5 sedan model
Xpeng (XPEV) officially launched its P5 family sedan model on September 15. The launch caught the attention of Morgan Stanley analyst Tim Hsaio who said XPeng is “aiming to redefine the smart EV market”. The analyst first noted the potential sales impact of the P5 model in July when citing a FY2021 delivery forecast of 60-65K vehicles.
Furthermore, Tim Hsiao noted that the P5’s features and technology will differentiate it from other vehicles in the industry. The analyst added that the P5 will outsell the companies best selling model, the P7 as early as next year. Morgan Stanley’s price target remains the highest on Wallstreet.
The Bottom Line – BofA maintains Bull case for XPeng stock
Overall, the upgrade from BofA analyst Ming Hsun Lee reaffirms the companies strong delivery performance over recent months despite the wider concerns of supply constraints. However, the market remains indifferent with majority of the EV sector in the red for now. We will continue to cover the delivery updates from EV companies over the next few days.
The information above is presented as factual information and is not financial advice nor does it constitute a recommendation. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.
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